- Investors in Valeant Pharmaceuticals (VRX) continue to follow hedge fund honcho Bill Ackman to the exits. Shares are down 12% premarket on robust volume.
- Ackman's Pershing Square Capital Management, L.P. could have lost over $5B from its ill-fated investment in the beaten-down drug firm. Pershing last owned 27,234,432 shares, which were sold at $11 for proceeds just shy of $300M. In March 2015, it owned 34,118,551 shares and derivatives when the stock was at $200 (>$6.8B) so the shares just liquidated were valued at ~$5.45B, implying a loss of ~$5.15B.
- At its current value, Pershing stated that its Valeant position represented 1.5 - 3.0% of its funds, but required an inordinate amount of time and resources so it elected to sell and realize the tax loss.
- Mr. Ackman and Pershing Vice Chairman Steve Fraidin will remain on Valeant's board until the Annual Meeting but will not stand for re-election.
- Source: StreetInsider